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China, US, banks give mixed signs of recovery
(Agencies/chinadaily.com.cn)
Updated: 2009-04-17 07:55 The results of "stress tests" to gauge how the 19 biggest US banks would fare should the recession worsen will be publicly disclosed on May 4, a regulatory official said. Markets are anxiously waiting to see which banks are on the route to recovery and which need more government rescue money. Wall Street stocks turned higher at midday as the weak data was offset by forecast-beating quarterly profits at JPMorgan Chase and positive reports from the technology sector. Grim European Numbers Recovery prospects were cloudier in Europe as data showed record fall in the industrial output. Industrial output in the euro zone fell by a record 18.4 percent year-on-year in February, and inflation halved to an all-time low in March, adding to pressure on the European Central Bank to ease policy. Still, there were positive comments in Europe a day after the Federal Reserve said the US recession may be nearing an end with signs of stability in some sectors. "If you follow all the indicators, you see some stabilization, albeit at a low level," said European Central Bank Governing Council member Erkki Liikanen. The worst of Britain's recession "may well be behind us," Bank of England Monetary Policy Committee member-designate David Miles said. Europe's auto sector, given state support through purchase incentives and loans, showed some signs of rebounding in March with new car registrations down 9 percent, about half the fall seen in the quarter. Markets Get Boost A Reuters poll showed confidence at Japanese companies remaining near record lows, but Swiss drugmaker Roche and French food group Danone both stuck to their 2009 earnings targets. Nokia's quarterly earnings were slightly below forecast, but the world's top cellphone maker said demand was becoming more predictable in the second quarter. JPMorgan, the No. 2 US bank, reported quarterly earnings per share of $0.40 as a better investment banking performance offset higher losses from consumer debt. The Dow industrial index fell 0.1 percent, the S&P 500 rose by 0.2 percent higher and the tech-heavy Nasdaq added 1.4 percent. Asian shares rose and European stocks hit a two-month high on JPMorgan's results and the comments by Nokia. The dollar and yen rose against the euro. While oil edged up nearly 1 percent toward $50 a barrel, gains were limited by the mixed US and Chinese economic data.
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